The world’s biggest beer company is looking at making cannabis drinks


The world's biggest beer company is looking at making cannabis drinks
Bottles of Budweiser beer move down the bottling line at the Anheuser-Busch Budweiser brewery in St. Louis, Missouri, U.S., on Tuesday, July 28, 2015. AB InBev's next quarterly earnings are due out on July 30, 2015. Photographer: Luke Sharrett/Bloomberg

In Summary

  • For now, AB InBev is only looking at using cannabis ingredients in Canada.
  • Other big consumer brands are looking into how they can capitalize on loosening restrictions on cannabis products.
  • With Democrats winning control of the US House of Representatives, Congress may finally pass the Farm Bill, which would make it legal to produce hemp and potentially open the door for more products containing cannabidiol, or CBD.

Could Budweiser drinkers soon be swapping beer for pot?

AB InBev (BUD), the world’s biggest brewer, said Wednesday that it’s teaming up with Canada’s Tilray (TLRY) to research cannabis-infused drinks.

It’s the latest major company to start exploring the pot market following decisions to legalize recreational marijuana in Canada and a number of American states. AB InBev and Tilray will invest a combined $100 million into researching non-alcoholic drinks containing cannabis elements.

“We intend to develop a deeper understanding … that will guide future decisions about potential commercial opportunities,” Kyle Norrington, president of AB InBev’s Canadian subsidiary Labatt Breweries, said in a statement.

For now, AB InBev is only looking at using cannabis ingredients in Canada. The company, whose top brands include Bud Light and Stella Artois, will make a decision on whether the pot products are commercially viable at a later date.

Tilray, which is based in British Columbia, specializes in medicinal cannabis products. Earlier this week, the firm announced a partnership with Swiss pharmaceuticals company Novartis (NVS) to distribute medicinal pot in international markets.

The Canadian company’s stock has more than quadrupled since it went public on the Nasdaq in July.

Other big consumer brands are looking into how they can capitalize on loosening restrictions on cannabis products.

With Democrats winning control of the US House of Representatives, Congress may finally pass the Farm Bill, which would make it legal to produce hemp and potentially open the door for more products containing cannabidiol, or CBD.

For now, AB InBev is only looking at using cannabis ingredients in Canada. The company, whose top brands include Bud Light and Stella Artois, will make a decision on whether the pot products are commercially viable at a later date.

Tilray, which is based in British Columbia, specializes in medicinal cannabis products. Earlier this week, the firm announced a partnership with Swiss pharmaceuticals company Novartis (NVS) to distribute medicinal pot in international markets.

The Canadian company’s stock has more than quadrupled since it went public on the Nasdaq in July.

Other big consumer brands are looking into how they can capitalize on loosening restrictions on cannabis products.

With Democrats winning control of the US House of Representatives, Congress may finally pass the Farm Bill, which would make it legal to produce hemp and potentially open the door for more products containing cannabidiol, or CBD.

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